Nike Q4 Earnings to Rise 200%; Buy with Target Price $164

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Updated: Apr 18, 2022, 08:26 UTC

The world’s largest athletic footwear and apparel seller Nike is expected to report its fiscal fourth-quarter earnings of $0.51 per share, which represents year-over-year growth of 200%, up from a loss of -$0.51 per share seen in the same period a year ago.

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The world’s largest athletic footwear and apparel seller Nike is expected to report its fiscal fourth-quarter earnings of $0.51 per share, which represents year-over-year growth of 200%, up from a loss of -$0.51 per share seen in the same period a year ago.

The Beaverton, Oregon-based footwear retailer would post year-over-year revenue growth of over 75% to $11.8 billion.

Nike shares slumped over 6% so far this year. The stock was trading 0.34% higher at $132.95 on Wednesday.

Analyst Comments

“There are many moving pieces in the Nike (NKE) model including an easy comparison from Q4:20 and shipment shifts into Q4:21 but our proprietary data on China through May 2021 is pointing to a continued deceleration in Tmall GMV, negative social media sentiment in China, and poor Baidu search trends. FY22 consensus EPS estimates appear too high. We are lowering our price target to $145,” noted John Kernan, equity analyst at Cowen.

Nike Stock Price Forecast

Eighteen analysts who offered stock ratings for Nike in the last three months forecast the average price in 12 months of $164.00 with a high forecast of $192.00 and a low forecast of $140.00.

The average price target represents 23.44% from the last price of $132.86. Of those 18 analysts, 15 rated “Buy”, two rated “Hold” while one rated “Sell”, according to Tipranks.

Morgan Stanley raised the stock price forecast to $185 from $172 with a high of $354 under a bull scenario and $97 under the worst-case scenario. The firm gave an “Overweight” rating on the footwear company’s stock.

“Revenue is a well-understood risk in 4Q, & our predictive model’s outlook has improved. Our online discount tracker suggests GM upside, & SG&A guidance appears conservative, which could drive an EPS beat. ST risk appears priced in per YTD underperformance. Stay OW & raise PT to $185 on lower WACC,” noted Kimberly C Greenberger, equity analyst at Morgan Stanley.

Several other analysts have also updated their stock outlook. UBS cut the price target to $170 from $175. Jefferies raised the target price to $192 from $140. Barclays cut the target price to $165 from $174. Cowen and company slashed the price target to $145 from $155.

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